subject: How To Open A Restaurant Business? 3 Questions You Should Ask [print this page] What is my Company's Structure? What is my Company's Structure?
The corporate structure of your restaurant business is integral to its success because it can affect the environment your company operates in, and even has legal implications that can limit your company's liability.
Although there are certainly advantages and disadvantages to every corporate structure, an LLC is often the best fit for a startup restaurant. LLC's protect entrepreneurs from personal liability while simultaneously offering both simplicity and flexibility that are not present in most corporate structures. Corporations require a board of directors, shareholders, and other commercial formalities that can be a hassle for a new business.
What Administrative Regulations Am I Subject To and What Permits Do I Need?
Restaurants must file articles of incorporation, which is relatively quick, and will allow you to acquire a Federal Tax Identification Number which allows your company to properly pay its taxes.
Furthermore, restaurants must meet all the local zoning laws that govern restaurants and also pass the codes enacted by whatever restaurant regulation agency that has jurisdiction within your local area. While these inspections are relatively cheap, they can take up to nine months for acceptance. The acceptance policy includes documentation of counter space, kitchen equipment, and ventilation systems.
If your establishment wants to sell alcohol then it will need to acquire a liquor license which can cost anywhere from a few hundred dollars all the way up to $10,000. Successful restaurants make sure their establishments are up to code and properly secure the regulatory issuances that allow them to legally operate in whatever community they are serving. Although starting a restaurant seems simple in principal, proper planning and adequate time to acquire necessary permits is fundamental to a successful startup.
How Do I Choose Suppliers?
Smaller establishments may be better off utilizing a small pool of regular suppliers in order to streamline processes and establish long-lasting business relationships. When assessing suppliers, remember that price is important but so is quality, safety, and delivery reliability. When evaluating fresh food, always inquire about taking a quick tour of a distributor's facility paying close attention to cleanliness and adherence to code.
by: Eric Powers
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